• Cardano (ADA) is suffering from market selling pressure on Tuesday and its price forecast remains downbeat.
• The ADA price is being helped up by firm support in the form of the 200-Day Moving Average (DMA) just above $0.35.
• Despite some positive developments such as increasing Total Value Locked (TVL), risks are tilted towards fresh downside for Cardano due to a bearish breakout of a descending triangle.
Cardano Price Forecast Downbeat
Cardano (ADA), the cryptocurrency that powers the smart-contract-enabled Cardano blockchain, continues to suffer amid elevated crypto market selling pressure on Tuesday. Price forecasts thus remain downbeat. ADA/USD was last changing hands around 0.5% lower on the day in the $0.36s, with losses on the week last at around 3.4% after ADA dropped below key support near $0.38 on Monday.
200DMA Support Keeping Bears At Bay
For now though, the ADA price is being helped up by firm support in the form of the 200-Day Moving Average (DMA) just above $0.35. Indeed, the bears attempted to push the price below this level on Monday but to no avail. While the bounce from the 200DMA is a good sign, the prospect of a Tuesday rebound may remain limited, with Cardano struggling amid capacity problems seen across other major blockchains like Bitcoin and Ethereum which have weighed on sentiment recently..
Wednesday’s CPI Report Could Limit Rebound Prospects
Another factor likely to keep bulls at bay on Tuesday is Wednesday’s looming US Consumer Price Index report which could influence expectations as to Fed interest rate plans and thus cause volatility for ADA/USD prices..
Total Value Locked On Blockchain Up 300%
In light of cryptocurrencies recent bearish breakout of a descending triangle, risks are tilted towards fresh downside for Cardano despite some positive developments such as increasing Total Value Locked (TVL). TVL was last around $170 million, up close to 300% since January according to data from DeFi Llama which suggests investors are moving funds into Cardano’s Decentralized Finance ecosystem in order to capitalize upon higher yield-generating opportunities within it..
Can ADA Reach $10?
It remains uncertain whether or not Cardano will be able to reach its previous heights near or over $10 per token given current market dynamics however if investors continue shifting funds into its DeFi ecosystem then there may be some hope that it can do so in 2023 once capacity issues have been addressed and more bullish macro trends emerge across cryptos overall